Question
Compute the semi-annually compounded yield to maturity from given price for the specified coupon bond or the price from given YTM. a. When the yield
Compute the semi-annually compounded yield to maturity from given price for the specified coupon bond or the price from given YTM.
a. When the yield to maturity (YTM) of the 10 year 1.50% semi-annually coupon paying T-note is 1.01%, what is the price for this T-note?
b. When the price of the 2 year 2.25% semi-annually coupon paying T-note is 97.9872, what is the yield to maturity (YTM)?
Step by Step Solution
3.45 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
a To find the price of the Tnote we can use the following formula Price C r x 1 1 1 r22n F 1 ...
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Step: 2
Step: 3
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
